1.What is meant by the terms “Organization” ?
2. What is Organization design and what is its purpose?
3.What are the tools typically used to structure Organization ?
In organizing its human resources, the organization must identify who will do what and where; in
some cases they may also specify the how, why and when. Within any organization there is a need
to divide, allocate, coordinate and control activities so that goals and organizational aims are
achieved. In addressing such challenges we may pose three related questions: What is the
organization trying to do? How is it trying to do it? And why do it in that way? The first question is
concerned with strategy and the second with structure. The overall pattern of structural
components and configurations used to manage the total organization is termed the Organization
design. A number of fundamental questions for design may be proposed for managers of
organizations: Should jobs be broken down into narrow areas of work (Specialization) or do we,
for flexibility, require generalists? Should there be a tall or flat hierarchy (Spans of control) i.e.
how many levels of management do we need? How should jobs and therefore people be grouped
together (by function/ geography etc)? How should employee groups be differentiated and
integrated? And how should the organization be controlled?
An appropriate design might yield benefits such as efficiency and scale, the ability to access
specialized and location-embedded resources, enhanced innovation through operations across
markets, and the creation of operational flexibility with which to respond to factors outside a
firm’s control. The design can impact upon performance through employee motivation,
commitment and loyalty and has the ability to link interdependent activities. The design may also
impact upon the sharing of resources, including information and knowledge. There is a need to
ensure the structure ‘fits’ the strategy therefore an appropriate design might enable the
achievement of strategies such as cost leadership, differentiation and focus. The purpose of design
is to divide up organizational activities, allocate resources, tasks and goals and to coordinate and
control activities so that goals can be achieved.